Water Companies: Private Ownership

Lord Cromwell Excerpts

Wednesday 29th October 2025 Lords Chamber

[Lord Katz (Lab)]

I thank the noble Baroness for that question. To build on the answer I gave to my noble friend Lord Sikka, we have already put in place new measures, including the emergency legislation last year, to ensure that we are bearing down on water executives. We have indeed taken action. As I said, we are putting in place robust support measures for customers who are struggling to pay their bills and, as a result, water companies have more than doubled the number of customers who receive help with bills through social tariffs, from 4% to 9% by 2030. We are working with industry to keep current support schemes under review to ensure that customers are sufficiently supported.

[Lord Cromwell (CB)]

Does the Minister agree that the real issue is not public or private ownership but that the regulator clearly lacked the financial engineering skills to understand, spot and curtail the excessive debt loading and value extraction by private equity in previous years?

[Lord Katz (Lab)]

I agree completely with the noble Lord. Efficient, precise and forensic regulation is needed in this sector. That came across very clearly in the report of the Independent Water Commission led by Sir Jon Cunliffe. In response to his report, we have already committed to establishing a single regulator for water and to introduce a regional element within it so that, working with local communities, local businesses and water companies, the needs of an area, whether agriculture or the built environment, are taken account of in determining water company action.